The Israel Tax Authority is aiming high, and drawing up a multi-year strategic plan with the aim of adding NIS 10 billion annually to the public purse.
The plan is taking shape after a comprehensive study by international consultants McKinsey, which has been working with the Tax Authority over the past year. McKinsey examined the Tax Authority's activity in all its aspects, and looked at dozens of projects that the Authority is promoting. In general, the findings are encouraging, with good, efficient collection by international standards, and effective tax auditing, which creates deterrence to tax avoidance.
At the same time, there is no lack of problems. Among other things, McKinsey found a low quantity of tax assessments, and inadequate manpower in assessment and auditing.
From 2016, the Tax Authority will run a pilot program to test the recommendations and draw conclusions. The Authority believes that if it receives all the necessary means, including legislation, computer systems, manpower, and so on, the state will benefit to the tune of NIS 10 billion annually. Even now, the tax collection by the Tax Authority under Moshe Asher is NIS 9 billion ahead of collection estimates.
The ambitious and costly plan presumably requires massive support from the Ministry of Finance, but sources there have made clear that this is a joint project that the ministry supports, and that Asher had been given to understand that the budget for it would be found.
Published by Globes [online], Israel business news - www.globes-online.com - on October 20, 2015
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